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TMI Blog2007 (6) TMI 504X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. The first appellant is the Mysore City Corporation. They let out the Town Hall of the Corporation for cultural functions and organising of Political events. The second appellant is Kalamandir, Deptt. of Kannada Culture, Government of Karnataka. They have a hall named Kalamandir for organising various functions, events and activities on temporary basis. Revenue proceeded against both the appellants for non-payment of Service tax under the category of Mandap Keeper . The appellants were aggrieved over the order of the lower authority and approached the Commissioner (Appeals). The Commissioner (Appeals) passed the impugned orders upholding the orders of the original authority. Aggrieved over the order of the Commissioner (Appeals), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he said decision has been rendered in a situation when the term social function was not clarified by any explanation inserted in the Act itself and hence in the present context the same would be no longer a good law. The decision in the ADA Rangamandira Trust case has not considered the other activities (as distinct from functions like dance, drama, film shooting etc.) as not falling within the purview of social function for levy of Service tax under the category of Mandap keeper. (iii) In respect of appeal ST/44/2006, the period of demand is from 1-4-2000 to 31-8-2004 as suppression, will full intention have not been established and the Show Cause Notice has been issued only on 8-4-2005. The extended period cannot be invoked. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at it would include all activities which are in the nature of promoting culture, language like Kannada language, dance, drama etc. The scope of the term social function can be only such functions where there is a get together of individuals (whether relatives, friends or others) like a birthday party, marriage, house warming ceremony, kitty party, etc. The term social has been defined in Standard Dictionaries to mean involving allies or confederates marked by or passed in pleasant companionship with one s friends or associates . Thus, when it is not involving pleasant companionship with friends, such an event or an activity can never be considered as falling within the scope of social function. (vi) The activity of organizing music ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ocate has come to the conclusion that social function, as far as the Finance Act, 2007 is concerned, means only marriage and similar functions. We are afraid that the above conclusion is not correct. The explanation says that social function includes marriage. Since it is an inclusive definition, social function is not restricted to marriage alone. Therefore, to say that in view of this explanation, this Bench s decision in the case of ADA Randamandira is no longer good law, is not correct. The explanation inserted on 11-5-2007 cannot nullify the reasoning adopted in the ADA Randamandira decision. 5.1 Let us reproduce the definition of Mandap keeper . Mandap Keeper means a person who allows temporary occupation of a mandap for cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s clarification of 1997, we held that programmes of dance, drama and music are social functions. According to the Oxford Advanced Learners Dictionary, function means a social event or official ceremony . The term social function is very comprehensive. Cultural events are only a subset of social functions. In our view, any cultural event would also be considered as a social function. In a social function like dance or drama, many people attend for watching the programme. We cannot say that there is no meeting of minds. The learned Advocate wants to restrict the scope of function only to certain ceremonies like marriage. We are afraid that there is no justifiable reason for limiting the scope of the term social function in such a manne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se no charges/rental is being paid i.e. the premises are given out free of cost to hold such function, there would be no Service tax liability. 5.3 As regards Kannada film shooting and political meetings, it is very clear that they cannot be considered as social functions. Therefore, such instances have to be excluded from the levy of Service tax in the category of Mandap Keepers. 5.4 Both the appellants have urged that the invocation of longer period is not justified, as they were under the bonafide impression that their activities would not come within the purview of Service tax under the category of Mandap Keeper. We are in agreement with the contention of the appellants. Therefore, the demand will be restricted to the normal perio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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